U. H. Zaveri (541338)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹19.43 |
| Market Cap | ₹20.59 Cr |
| P/E Ratio | 855 |
| ROCE | 0.87% |
| ROE | 0.28% |
| Dividend Yield | 0% |
| Profit Growth | -50% |
| Debt/Equity | — |
| Sales Growth | 17.67% |
| 52-Week Range | ₹9.36 — ₹19.43 |
| Sector | Consumer Durables |
| Book Value | ₹7.1 |
Strengths
- Sales growth of 17.67% indicates some demand traction in the business.
- Latest quarter revenue of ₹18 Cr shows operational scale despite low profits.
- Book value per share of ₹7.10 provides a tangible asset base.
- Price close to 52-week high suggests recent market interest.
Concerns
- Extremely high P/E of 855 with profit growth of -50% shows earnings collapse.
- ROE of 0.28% and ROCE of 0.87% reflect very poor capital efficiency.
- Latest quarter net profit of ₹0 Cr signals potential near-term earnings pressure.
- Piotroski F-score of 4/9 indicates weak financial health and no dividend yield.
AI Analysis
Let me look at U. H. Zaveri through the eyes of Graham and Buffett. A ₹21 crore market cap, trading at ₹19.43, with a P/E of 855 — that tells me the market is paying an enormous premium for very little earnings. The company has grown sales by 17.67%, but profits have collapsed by 50% and the latest quarter shows net profit of just ₹0 crore on ₹18 crore of sales. This is not a business with a durable moat; it's a small player in the highly competitive and cyclical gems and jewellery trade. Return on equity is a microscopic 0.28%, and ROCE is only 0.87%. Any prudent investor would demand a substantial margin of safety for such weak profitability, but here price-to-book is 2.74 times, meaning you pay nearly three times the ₹7.10 book value for a business that barely earns anything. The Piotroski F-score of 4 out of 9 reflects poor financial health, and the dividend yield is zero — so you get no income while waiting. Sales growth is positive, but is it quality? Margins are evidently thin or nonexistent, and the PEG ratio of 48.39 reinforces that the valuation far exceeds any growth potential. At the 52-week high, this looks like speculative enthusiasm, not value. I would not chase this. Benjamin Graham said price is what you pay, value is what you get. Here, you're paying a lot and getting very little. Unless there is a clear catalyst for margin recovery and sustained profitability, this remains a pass for me.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer